RoomStore files for Ch. 11 bankruptcy protection

AP News
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Posted: Dec 12, 2011 2:48 PM
RoomStore files for Ch. 11 bankruptcy protection

Discount furniture retailer the RoomStore is hoping to reorganize under bankruptcy protection.

The Richmond-based company filed for Chapter 11 bankruptcy protection Monday in U.S. Bankruptcy Court in Richmond.

RoomStore listed about $56 million in assets and more than $52 million in debts in its court filing.

The company says it hopes the move will help it reorganize around a core base of stores. It plans to close a significant number of stores and reduce its staff and expenses during the process.

The retailer reported a net loss of $7.7 million for the first six months of the fiscal year compared with a loss of $2.4 million in the same period in 2010.

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RoomStore operates 66 stores in eight states, including Virginia. It also owns part of Mattress Discounters Group.